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European stocks post sharp losses; DAX sheds 0.45%

Published 11/16/2010, 05:23 AM
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Investing.com – European stocks posted sharp losses on Tuesday, as shares in the financial sector led markets lower amid concerns over Ireland’s sovereign debt, while U.S. futures indexes pointed to a lower open on Wall Street.

During European morning trade, the EURO STOXX 50 tumbled 0.98%; France’s CAC 40 dropped 1.20%; while Germany's DAX shed 0.45%.

Shares in the financial sector performed poorly as concerns over sovereign debt problems in peripheral euro zone nations, especially Ireland, continued.

Shares in U.K. lenders Lloyds Banking Group plunged 2.75%, shares in rivals Barclays fell 1.29%, while the Royal Bank of Scotland saw shares drop 1.25% as U.K. banks faced increased exposure to the sovereign debt problems facing Ireland. 

Elsewhere in the sector, shares in Europe’s second-largest bank Credit Agricole tumbled 1.91%, while Spain’s biggest lender Banco Santander dropped 1.57%.

Meanwhile, shares in the world’s largest steel-maker Arcelor Mittal plunged 3.67% after financial service provider Citigroup downgraded the stock to ‘hold’.

In London, the commodity-heavy FTSE 100 tumbled 1.29% with miners leading declines as metal prices retreated. Shares in the world’s largest mining group BHP Billiton plunged 2.51%, rivals Rio Tinto saw shares tumble 2.96%, while shares in the world’s fourth-largest copper producer Xstrata plummeted 3.18%.

The outlook for U.S. equity markets, meanwhile, was downbeat ahead of earnings reports from the largest U.S. home improvement retailer Home Depot and from the world’s largest retailer Wal-Mart.

The Dow Jones Industrial Average futures pointed to a decline of 0.57%, S&P 500 futures pointed to a loss of 0.58% and Nasdaq 100 futures indicated a drop of 0.75%.

Later in the day, the U.S. was to release key data on producer price inflation and industrial production, as well as a report on the capacity utilization rate.


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